Organizational change during economic downturns: Psychological drivers of employee resistance and management strategies
Vol 9, Issue 8, 2024, Article identifier:
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Abstract
This study investigates employee resistance to organizational change during economic downturns, examining the mediating roles of uncertainty perception and job insecurity, and the moderating effect of organizational identification. Using a time-lagged design, data were collected from 3,827 employees across 50 organizations in various sectors. Results indicate that the magnitude of organizational change positively relates to employee resistance behavior, with this relationship partially mediated by uncertainty perception and job insecurity. Organizational identification moderates this relationship, with higher identification weakening the positive association between change magnitude and resistance. These findings were consistent across different organizational sizes and sectors, enhancing their generalizability. The study contributes to change management theory by integrating perspectives from uncertainty reduction theory, job insecurity research, and social identity theory. It offers practical implications for managers, emphasizing the importance of clear communication, efforts to strengthen organizational identification, and strategies to mitigate uncertainty and job insecurity during change initiatives. The research provides a foundation for developing more effective, employee-centric change management strategies in challenging economic contexts, while also identifying avenues for future research, including longitudinal studies and cross-cultural investigations.
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DOI: https://doi.org/10.59429/esp.v9i8.2951
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